1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nikolay [14]
3 years ago
10

Suppose management estimated the market valuation of some obsolete inventory at $99,000; this inventory was recorded at $120,000

, which resulted in recognizing a loss of $21,000. The auditors obtained the following information: The inventory in question could be sold for an amount between $78,000 and $92,000. The costs of advertising and shipping could range from $5,000 to $7,000.
Required:
a. Would you propose an audit adjustment to the management estimate?
b. Prepare the appropriate accounting entry.
Business
1 answer:
Annette [7]3 years ago
4 0

Answer:

a. An audit adjustment is needed since the best case scenario, where the net realizable value is highest would result in $92,000 - $5,000 = $87,000.

b. the value of inventory must decerase by $99,000 - $87,000 = $12,000, so COGS must increase by that amount:

Dr Cost of goods sold 12,000

    Cr Merchandise inventory 12,000

You might be interested in
A person is planning to open a savings account with the intent to buy a house in 5 years. They will invest an equal amount each
lisov135 [29]

Answer:

The correct answer is C: $4300

Explanation:

Giving the following information:

They will invest an equal amount each month for 5 years.

This account will earn 6% per year(0.5% per month)and will have $300,000 at the end of the 5-year term

We need to use the following formula:

final value= {A[(1+i)^n-1]}/r

A= cuota

i= monthly interest

n= 60 months

Isolating A:

A= (FV*i)/[(1+i)^n-1]

A= (300000*0.005)/[(1.005^60)-1]

A= 1500/0.34885= 4300

3 0
3 years ago
According to the New York Times, during the mortgage crisis real estate brokers had an incentive to steer borrowers to higher-co
just olya [345]

Answer:

Rawls' Theory of Justice.

Explanation:

Rawls argues that self-interested rational persons behind the veil of ignorance would choose two general principles of justice to structure society in the real world: 1) Principle of Equal Liberty: Each person has an equal right to the most extensive liberties compatible with similar liberties for all.

7 0
3 years ago
If you noticed that one of your co-workers was stealing a very small amount of cash from the cash register each day, how would y
Damm [24]

Noticing a cash embezzlement done by any colleague in work area then a personal ethics tend to be involved is loyal reporting to employer with quickly and decisively response.

<h3>What are Personal Ethics at work place?</h3>

Personal ethics refers to a person's moral principles and directs individuals in their decisions both inside and outside of the workplace.

Specific moral values will impact a person on how he/she will respond to a particular situations at work and how deal with it while advancing career.

Thus if a person find his or her colleague doing cash register manipulation contact immediately the team leader or any superior for the benefit of company.

To know more about Personal Ethics at work place refer:

brainly.com/question/1031443

#SPJ1

7 0
1 year ago
Suppose there are 6 firms in an industry with the following market shares. if the two smallest firms want to merge, how will the
Semenov [28]

The firms will not be allowed to merge if the two smallest firms want to merge. Thus, option D is correct.

<h3>What is a merger?</h3>

Anytime two businesses combine to create a new business, it is called a merger. Businesses merge in order to enhance their sales volume, diversified their product portfolio, decreased risk and rivalry, and maximize profits.

If the firm wants the people to merge the two companies then that means that there will be some issues that being there in the merger as they will imply that the corporate will have to take permission. Therefore, option D is the correct option.

Learn more about mergers, here:

brainly.com/question/1086715

#SPJ4

The question is incomplete, the complete question will be:

Firm 1: 30 Firm 2: 25 Firm 3: 25 Firm 4: 10 Firm 5:7 Firm 6:3

The firms will be challenged because the merger will raise the HHI by more than 50 points.

The firms will be allowed to merge and compete with the larger firms.

The firms will be challenged because the merger will raise the HHI by more than 100 points.

The firms will not be allowed to merge

The firms will be challenged because the merger will raise the HHI by more than 250 points.

3 0
1 year ago
When group investors become aware of overseas investment opportunities and are willing to diversify their portfolios internation
sammy [17]

Answer:

they benefit from an expanded opportunity set.

Explanation:

As most of the business organizations focused on grabbing the investment opportunities which leads to diversify their business in terms of expanding the business in various locations, maximize the market share etc

This can be done with the help of opportunity set i.e. to expanded through which the firm could get the benefit of it

Hence, this would be the answer

3 0
3 years ago
Other questions:
  • I really need help I know this isn’t about school but it’s really important. Valentine’s Day is coming up and I already have som
    11·1 answer
  • A stock is currently selling for $75 per share. You could purchase a call with a strike price of $73 for $4. You could purchase
    15·1 answer
  • Budweiser is a popular brand of beer. Part of this company's market research of U.S. consumers looked at education levels of bee
    6·1 answer
  • Ang Li has found it rather hard to move up in her managerial career at her workplace especially when compared to how fellow grad
    13·1 answer
  • Identify and analyze a department in your organization that experiences frequent equipment or process failures. If you are not c
    15·1 answer
  • An investment is expected to generate annual cash flows forever. The first annual cash flow is expected in 1 year and all subseq
    15·1 answer
  • For each macroeconomic viewpoint, identify whether it is a position held by classical economists, Keynesian economists, or monet
    7·1 answer
  • If all investors become more risk averse the SML will _______________ and stock prices will _______________. Multiple Choice hav
    5·1 answer
  • Paris Summer 20 Company sells small laptops. Based on the information below, calculate the Break even point in sales dollars for
    8·1 answer
  • Bill purchased 2,000 shares of stock for $22 per share. He sold them for $33. Express his capital gain to the nearest tenth of a
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!